A variety of factors bolstered consumer confidence in six of seven Latin American countries in Q4 2012, according to findings from the Nielsen Global Survey of Consumer Confidence and Spending Intentions. Argentina was the only country that didn’t register an increase from Q3, as its index level remained flat at 75.
Brazil had the highest confidence level in the region with an index score of 111, up one point from Q3, followed by Peru, where confidence increased one point to 98. Colombia’s confidence increased four index points to register at 95, and confidence in Chile rose one point to 95. Mexico and Venezuela increased by two points each to an index of 86 and 84, respectively.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions measures consumer confidence, major concerns and spending intentions among more than 29,000 respondents with Internet access in 58 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.
“There are a variety of political, economic and social realities that are driving a positive dynamic in Latin America,” said Paola Fonseca, vice president, Strategy and Innovation, Nielsen Latin America. “As Brazil solidifies its position as the regional leader, Mexico’s new government is improving the economic perspective, and Colombia’s peace negotiations are generating an optimistic environment. All of these factors combined to deliver good economic growth, which is elevating the region as a global player.”
“Brazil’s positive performance can be attributed to the strong internal market,” added Eduardo Ragasol, country manager, Nielsen Brazil. “The inflation rate remains stable, but there are areas to watch. For example, at the end of 2012, the industrial sector began reducing jobs.”
“The political situation in Mexico is more certain than in Q3, bringing more confidence to consumers,” said Germán Gutiérrez, country manager, Nielsen Mexico. “This, combined with an improved job market in the last quarter of 2012, contributes to improved stability and confidence among Mexican consumers. Sales trends among consumer packaged goods are also improving, and we expect continued good performance in the coming months. However, Mexico’s economy will be affected by the evolution of the financial situation in Europe and the U.S.”
Other notable findings include:
- North Americans were more optimistic about job prospects and recessionary conditions than in Q3
- Declining confidence in Europe spread from troubled to core countries
- Consumer confidence in developing Asia-Pacific markets outperformed developed ones
- Consumer confidence declined among Middle Easterners/Africans